Required Prepayment of Additional Notes Sample Clauses
The "Required Prepayment of Additional Notes" clause mandates that the borrower must repay certain additional notes before their scheduled maturity under specified circumstances. Typically, this clause is triggered by events such as asset sales, excess cash flow, or other predefined financial events, requiring the borrower to use proceeds from these events to pay down the additional notes. Its core practical function is to protect lenders by ensuring that extra funds or proceeds are used to reduce outstanding debt, thereby mitigating credit risk and improving the lender's security position.
Required Prepayment of Additional Notes. Each Series and tranche, if applicable, of Additional Notes shall be subject to required prepayments as specified in the Supplement pursuant to which such Series and tranche, if applicable, of Additional Notes were issued.